This week, AT&T started to roll out their new live TV streaming service AT&T TV. It is almost the same as the packages offered by DIRECTV and even the same price. (Yesterday, AT&T raised the price of DIRECTV to match AT&T TV.)
What is shocking is the fact that even though you pay the same for AT&T TV as you do DIRECTV you actually get less for your money. A few of the most notable missing features are some local channels, NFL Network, NFL Sunday Ticket, and, strangely, AT&T Sports Net.
The other thing AT&T TV is missing is someone to set up your TVs for you. AT&T still charges an activation fee the same as if you paid someone to come to your house and set up DIRECTV.
AT&T has made it clear that they see AT&T TV as a way to make more money from TV customers. With AT&T TV they don’t have to send someone to your house to set up your new account. This saves them a huge amount of money. AT&T’s CEO has even said they plan to no longer launch new satellites for DIRECTV, meaning the long-term costs of AT&T TV will be far lower.
The question now is if AT&T TV customers are paying the same price as DIRECTV and getting less will they stay around. Also, will AT&T TV customers be as forgiving as DIRECTV NOW customers with outages or other issues that may come up with a new streaming service.
Clearly, AT&T is not targeting cord cutters. Who does AT&T think their long-term customers for AT&T TV will be? Without some of the most popular sports and customer service experience as DIRECTV will people really pay the same price?
For now, AT&T is betting that AT&T TV will save them from cord cutting. Only time will tell if that really happens.
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